1. Field of the Invention
This invention relates to an apparatus and method for matching a potential lender with a potential borrower. More specifically, the present invention involves enabling a potential money lender and potential borrower to provide specific loan terms, the range of acceptable loan terms, and a listing of negotiable loan terms.
2. Description of Related Art
Currently, the Depositors (lenders) and the borrowers of money mainly transact through recognized financial institutions, most often Banks, or other financial institutions. These Banks are regulated by the respective Central Banks of the country which prescribe rules and regulations to these Banks to protect the interest of the Depositors. Yet the depositors run the risk on these Banks and their ultimate borrowers of these banks, as the depositors are not privy to the information for the end use of their money. In many countries the depositors are unsecured creditors of these Banks and Financial Institutions. This structure creates centralization of the risk management. Any failure in the risk management measures of the centralized system exposes the whole economy and the depositor or investor to greater risk. Though there are rules and regulations to govern the interest of the Depositor, however they don't have control over the end user of their monies. Even the depositors' insurance is limited to a certain fixed amount per depositor by insurance companies.
The Banks earn a spread over the interest paid to the depositor to cover the following:                1. Reserves maintained with the Central bank which yields less than market rate or no return.        2. Priority sector lending at a subsidized rate as prescribed by the Central bank, which yields a lesser rate of return.        3. Operational costs of running the banks.        4. Premium for the risk.        5. Profit for the bank.        6. Other borrowing risks.        